Page 13 - IB June July 2024

Tourism

FIJI POSITIONED FOR GROWTH IN ASIA

PACIFIC REAL ESTATE MARKET

By Prerna Priyanka stating, “the major players are ready to do
business”.
Fiji is on the brink of significant growth in the Asia Pacific Future supply in the hotel sector is also
real estate market, according to Nick Thompson, Hotels and promising, with several developments in the
Hospitality Director at JLL New Zealand. pipeline.
Speaking at a recent tourism investment conference, “There’s a lot of development available,
Thompson outlined Fiji’s robust tourism recovery, the promise and many properties have potential for
of domestic and emerging Indian markets, and the shift Nick Thompson expansion,” he said.
towards high-net-worth investments as potential drivers of Thompson also encouraged confidence in the market
this growth. despite some softening trends.
He highlighted the impressive rebound of Fiji’s tourism “Let’s keep pushing the ADRs. People love it here; it’s
sector. Fiji welcomed 900,000 visitors last year, a number well easier and safer. Fiji’s competitive advantage, combined with
above the pre-COVID levels of 2019. the increasing focus on ESG (Environmental, Social,
Thompson believes that Australia and New Zealand view and Governance) principles, positions it well for future
Fiji as a domestic market, which significantly contributes to growth.”
the increase in tourist numbers, but also says that India is
untapped market.
“It’s a vast market throughout Asia Pacific, and Fiji needs Luxury tourism operator Vanua
only a tiny portion of that to make a substantial difference.” Ranch aims for 2026 opening
With a significant Indo-Fijian community familiar with
Indian culture and business practices, the focus on increasing Vanua Ranch has revealed plans to
airlift from India could further boost tourist numbers. open Fiji’s first boutique villa resort,
Investment trends in the region also indicate a positive blending farm-based experiences with
outlook. Thompson noted a shift towards high-net-worth high-end luxury, by 2026.
investors and family (private businesses) looking for Located in Uciwai, Vanua Ranch
investment opportunities in Fiji, driven by favourable will feature 17 exclusive boutique
economic conditions. villas strategically positioned to offer
“There’s a lot of private equity money sitting out there, panoramic 180-degree views stretching Steve Howard
and Fiji offers a compelling opportunity with positive carry from Momi to Denarau Island.
rates,” he explained. “Vanua Ranch represents a new category of agritourism
The country’s first mortgage rates are around 3.95%, while in Fiji”, Director Steve Howard stated.
cap rates for hotel investments can reach up to 11%, making “Our vision is to not only provide luxurious
it an attractive proposition for investors. accommodations but to enrich the cultural experience for
Despite global uncertainties, such as geopolitical tensions visitors.”
and economic headwinds, Fiji remains a safe and appealing The project has been in the works for over 15 years, and
investment destination. aims to significantly integrate local communities into its
Thompson observed, “Fiji, along with New Zealand and operations.
Australia, is far removed from the turmoil in other parts of “We are committed to employing local villagers for most
the world, making it a preferred location for investors.” services,” Howard affirmed.
Fiji’s market performance has been remarkable, he notes, “Furthermore, we’re dedicated to giving back through
with near-full occupancy rates and average daily rates (ADR) grants, educational opportunities, and support for local
surpassing pre-COVID levels. trades.”
“We’re seeing mid-to-high 90% occupancies across the He says sustainability is central to Vanua Ranch’s ethos.
market,” Thompson shared. Beyond its luxurious offerings, the resort plans to
He noted ADR is currently at 125% of pre-COVID levels. integrate immersive farm-to-table dining experiences and
However, challenges remain, particularly in the branding of cultural engagements that showcase traditional Fijian
hotels. “One of the interesting issues in Fiji is the spread of farming practices.
brands.” “We plan to open in 2026, pending final approvals,” he
He says 71% of hotels lack a global brand, and this presents shared.
an opportunity for franchising and the introduction of “Despite setbacks from the pandemic, we remain
international brands, which could enhance the market’s focused on creating a development that showcases the
appeal and performance. best of Fiji.”
He encouraged stakeholders to explore these opportunities,

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